Rail

American Railcar will invest in leasing plan

Posted on December 14, 2010

American Railcar Industries Inc. (ARI) said it plans to invest in railcar leasing as it seeks to expand and diversify its business in response to customer demands and market conditions.

"ARI is very excited to offer railcar leasing and provide another option for customers to utilize our quality railcars," said President/CEO James Cowan. "We remain committed to meeting the needs of our customers. The economy and railcar market have been challenging over the last couple of years and ARI is responding to those challenges with an expanded market strategy."

The company, which currently sells, repairs, refurbishes and provides fleet management services for railcars, believes railcar leasing will provide customers with a broader offering of services.

ARI is currently in negotiations with American Railcar Leasing LLC (ARL), an affiliate, to enter into an agreement pursuant to which ARL would identify potential leasing customers for ARI in exchange for fees payable by ARI to ARL.

ARI also anticipates that the leasing business will provide a more consistent stream of cash flows and revenue, which management expects would diversify the company and improve performance during the down cycles of the railcar market. ARI currently plans to fund leasing operations through existing cash.

View comments or post a comment on this story. (0 Comments)

More News

FRA invests $21.2M in PTC, grade crossing safety, passenger rail

Grants awarded are part of a Notice of Funding Availability it issued in July 2014 to distribute new FY14 Omnibus funding as well as unobligated funds from the High-Speed Intercity Passenger Rail Program.

Metra adopting 'confidential close call reporting system'

According to the FRA, which has promoted the adoption of the system by a handful of railroads so far, the system complements existing safety programs, builds a positive safety culture, creates an early warning system, focuses on problems instead of people, provides an incentive for learning from errors and targets the root cause of an issue, not the symptom.

Cost of 3-week Cincinatti streetcar delay could total $2M

Additionally, the Southwest Ohio Regional Transit Authority has reduced its estimates by $569,000 for both streetcar fare revenue and what it believes it can capture from those who want to advertise on the vehicles.

The case for driverless trains by the numbers

Some of the benefits discussed by a CityLab report, include a 70% savings in staff, higher frequencies, significant operational savings and more room for passengers.

State lawmakers urge Metro Transit to step up fare enforcement

While an audit found that one of every 10 light rail passengers may not be paying fares, Metro Transit reports 94% compliance on its Green Line and 97% compliance on its Blue Line. Moving away from an honor system and installing turnstiles could cost the agency $107 million, according to the report.

See More News

Post a Comment

Post Comment

Comments (0)

More From The World's Largest Fleet Publisher

Automotive Fleet

The Car and truck fleet and leasing management magazine

Business Fleet

managing 10-50 company vehicles

Fleet Financials

Executive vehicle management

Government Fleet

managing public sector vehicles & equipment

TruckingInfo.com

THE COMMERCIAL TRUCK INDUSTRY’S MOST IN-DEPTH INFORMATION SOURCE

Work Truck Magazine

The resource for managers of class 1-7 truck Fleets

Schoolbus Fleet

Serving school transportation professionals in the U.S. and Canada

LCT Magazine

Global Resource For Limousine and Bus Transportation

Please sign in or register to .    Close